The Iola register., 1887-02-11
SECRETARY MANNING.

SECRETARY MANNING.
The Head of tho Treasury DeUartmene II
liehtcns Congress ~ 60 Certain Of His
Views In Regar.i to Necessary Lexislatton
to Preservs Orr Financial Equilibrium.
WASHINGTON, Feb. 2-Secretary Man
ming yesterday sent q long comnunica-
ton to Speaker Carlisle in reply to re-
cent resolution of the House of Represen-
tatives respecting reissue Of treasury
notes and the destruction Of United States
notes, etc. The first Of these resolutions
inquired whether any money appropriated
in the Sundry Civil bill or any other gov
ernment money had been expended for the
purpose of issuing treasury notes Of large
denominations, in lieu of notes Of small
denominations cancelled or retired. Sec
retary Manning, after observing that he
finds no authority to reissue treasury
notes, saws that if q more patient scrutiny
of the statutes At large discloses
such authority he could not,
except under fresh instructions
from Congress. conceive it duty to ex-
pend money for such . purpose; and then
he adds that none of the appropriation re-
ferred to. nor any other money belonging
to the Government. has been expended for
such purposes. The secretary then goes
into long argument in favor Of paying
the greenback debt and a repeal Of the
Compulsory Silver Purchase bill He
says:
sThat another species of our outstand-
ing Indebtedness. namely, the legal ten
ders or greenbacks, known in law as
United States notes, are equally with what
the law designates as treasury notes be.
yond any need or excuse for reissue; that
temporary notes which are debt OF
principal and interest, should at once be
cashed and Cancelled from abundant and
superfluous coin on hand not now capable
of being applied to any other use-this is
so obvious principle of sound finance.
such as prudent citizen would apply To
his private affairs, that any Secretary OF
the Treasury would be subject to
Just reproach for departure therefrom
by reissues, were it not that the
act Of May 81, 1878, seems to require OF him
that fiscal misstcp. And / beg leave to
submit to the House the question whether,
among many other reasons for its repeal,
the contraction of the currency sought to
be averted by that act can not in any
,ther and better way be prevented than
by its repeal. The fact that the s346 6Sl.-
DIG Of greenback debt is a Hreenback
currency. is TO far from being a reason
against its payment that it is reason
which makes its payment ans dcs;ruc-
ton necessary-not without better
currency to take its place; but
such a currency is at hand. But
also, a contraction OF the currency
should be avoided. The substitution of 4
better currency for the Greenbacks runs
no hazard Of contraction. Kut the conse-
9uen ces Of not using our coin surplus
thus are serious. For IL currency Of
some sort VITA the years taxes paid. and
the excess Of receipts over tine authorized
disbursements of the treasury would be
the m easure of the contraction Of the
currency. This contraction can be avoided
by appropriations for an cztravagant and
reckless outrUur of expense like that Of
war. 1t caa also be avoided by the pay
ment of debt. Tie first remedy need not
be discussed. it is of course the remedy
of the most unworthy of the peoples
representatives. The second rem edy IS
all that remains"
"Nyhat debt, then. shall we pay." the
secretary asks, and goes on to 'argue that
it would he an incxcusable extravaganza
to diminish the bonded debt not yet due
by aatkipatory purchase, at high
premium. when. under the operations or
the Sinking Fund law, every dollar Of the
National debt, greenbacks and all. Gamble
cancelled by 1865. OF anticipatory pay
ment of funded debt ut high premiIm,
the secretary says
"While successfully getting out of the
treasury the currency tax surplus. ana SO
preventing contraction in that form. is
that method. nevertheless. which would
contract the currency in another form bv
too suddenly diminishing National bank
circulation based on the funded debt 1t
f, is therefore necessary now. not only TO
reduce taxation IN order 10 prc..enf
surplus tax collecting from being currency
contracting again and again, but IL IS
necessary also to employ our present and
unavoidable tax surplus In the payment
not of funded. bat of the unfunded debt
Great eHtravagance ornecdless expense or
serious monetary trouble can both be so
avoided The peoples representatives. by
action before adjournment, can relieve the
Secretary Of TIE Treasury from bad
choice between these now present altcrh-
atives. Tho surplus coin and bullion
which will remain in the treasury after
all the DO Eds subict 10 call have
been paid. and before the the Fiftieth
Congress will assemble together with the
proceeds OF surplus taxation which will
flow into the treasury before any possible
reduction of taxes by the present Con-
gress can take effect, constitute a sum
which can we'll be got out of the treasury
into the hands of the people. where it be-
longs, by tine payment of the greenback
debt. Coin certificates are ready and
superior paper money TO the greenbacks.
The su .stituti0n can be effected as mere
matter of treasury administration when
ever two indispensable conditions are frs.
fulfilled by Congress. The repeal Of the
compulsory silver purchases is the first
indispensable condition. and the repeal Of
the compulsory host of redemption reis-
sues of United States notes is the next
and only other condition"
These two repeals are together neces-
sary. the Secretary insists. to prevent on
the one hand an extravagaht expense, or
on the other hand considerable contrac-
tion of the currency.
Replying to the other resolutions Of in
ouiry about the cancellation of 81 and 81
notes. the Secretary presents tables show
ing that since August 4. 1856. there has
been a decrease by obstruction of s.. SOL
9J7 of ones and q. S31.GS2 Of tyyos, and an
increase OF Sl2,OO0,OO0 in fves and &c. co.,
600 il ten dollar notes.